The US Department of Education, under the Biden administration, has canceled more than $66 billion in education debt through various programs.
Biden Administration’s education department cancels Billions in student loan debt
Over two million borrowers, including those who have been defrauded and public sector workers, have benefited from this relief. The Public Service Loan Forgiveness (PSLF) program has allowed certain nonprofit and government employees to have their federal student loans canceled after ten years or 120 payments.
The program has been broadened and eligibility requirements have been simplified, resulting in $42 billion in loan cancellations for over 615,000 borrowers since October 2021. Borrowers who believe they qualify for the program should fill out an employer certification form and maintain records of their qualifying payments.
A borrower may qualify for debt cancellation if their college engaged in misconduct, such as providing false or misleading information, through the borrower defense loan discharge program
Around 1 million people have had their debt relieved through this program for a total of $13.3 billion in relief. The Total and Permanent Disability Discharge program has erased $9.1 billion in debt for around 425,000 borrowers with a physical or mental disability that makes it difficult or impossible for them to work. The Biden administration is seeking to cancel up to $20,000 in student debt per borrower, which could wipe out up to $400 billion in debt.
Borrowers who have questions about their eligibility for loan forgiveness should contact their servicer or the Education Department.
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